32 thoughts on “4 Steps to invest in Rajiv Gandhi Equity Saving Scheme (RGESS) under 80CCG”

    1. Yes you can provided you satisfy other eligibility conditions. Also remember RGESS would not be available from next financial year!

  1. I have demat ac with HDFC,not operated yet , Can I convert this to RGESS to get tax benifit ,if yes then whom to approach and go ahead

    1. Yes you can convert the HDFC Demat account to RGESS and claim tax benefit on the same. You need to fill RGESS FORM-A and submit the form to your nearest HDFC Bank or HDFC securities office.

      The awareness about RGESS is low and so you might need to speak to senior person in the bank – in case you face any issues.

  2. subhankar chakraborty

    I have a demat account in SBI which is 6 years old. I had invested in some infra bonds in 2011. I have started investing in equity and mutual fund in this financial year(2015-16) only. Can I make my demat account RGESS enabled? If not , can I open an account in the name of my child or wife and make that RGESS enabled and claim tax benefit?

    1. You are eligible to invest in RGESS for tax benefit, in case you fulfill the income criteria.

      You cannot invest in the name of Wife/Children to get RGESS tax benefit. The demat account should be on tax payers name.

      1. Thanks for the information. So I need to request bank to make my demat account RGESS enabled and start investing in listed shares. Can you help me with the link where I can find the listed shares. Recently I have kept some amount in Indigo IPO, will that be considered ?

        1. I further looked into the eligibility criteria for RGESS and came across this FAQ from Ministry of Finance. You must look at Question no – 22 to get your answers!
          RGESS is anyway complex scheme and the eligibility criteria makes it even more complex 🙂

    1. Holding of shares purchsed in RGESS Scheme is governed by complex rules. You can read the detailed RGESS rules here.

      But in simple terms you should hold the share for minimum three years.

  3. Sir, I have opened Demat account six month ago with SBI. I didn’t trade any shares till now. I want to know i am eligible for RGESS Scheme or not. If I am Eligible, Kindly Send me Procedure to start RGESS.

    1. You would be eligible for RGESS if your taxable income is less than Rs 12 lakhs and the demat account has been opened after November 23, 2012. You will need SBI to mark the demat account as RGESS and then you can invest in eligible Mutual Funds and Stocks. Get more details here.

  4. Hi Sir,I have opened Demat account with ICICI-Direct 6 months ago.As part of understanding the stock trading,I had done intra day trading of only 1 stock & since then I never had traded through the Demat account.I would like to know if I can now invest through RGESS now.If Yes,then what is the procedure?Pls advise.

    1. You should be eligible for RGESS tax exemption. This is bit complicated scheme and I would recommend you to invest in RGESS schemes launched by mutual funds. Read about RGESS Scheeme to know more.

  5. I have open a demat account with SBICAPS under RGESS scheme. I would like to trade in the shares which are not a part of BSE100. Can I trade these shares in same demat account or I will have to open another account. How I can differentiate shares under RGESS scheme and others.

    1. Yes you can use the same Demat account for trading in shares not eligible for RGESS.

      Suppose you have 10 shares of ONGC in RGESS Portfolio, then you can add more of ONGC which is not part of RGESS. You can further sell these shares but maintain 10 shares of ONGC in Demat account after buying/selling. Though the rules give more leeway in transactions but I would recommend to maintain the minimum number of shares of RGESS portfolio even if you are transacting in the same shares.

  6. Hello Amit,

    I’m already investing 2000 per month in SBI mutual fund. Am I eligible for this RGESS scheme? I don’t have a demat account till now.


  7. Hi Amit,

    Can I open one Demat account with a DP and another RGESS with another? I’m trying to start investing in Mutual funds (SBI Magnum global fund). If I’m investing in mutual funds am I eligible to invest in RGESS? Please let me know.

    And by the way all your information is so valuable and through your articles and calculators I reduced my monthly tax from 3000 to 800. Thank you very much.

    Thank you

    1. Its great to know that my blog helped you in reducing your taxes!

      Yes you can have multiple Demat account with one of them marked as RGESS. But I would recommend you to have only one demat account as its easier to manage and would be cheaper!

  8. We have demat A/C which is already have trading of shares.

    Is our a/c can be converted to RGESS and tax benfit?

    Give us details of conditions of demat a/c holder to join RGESS

      1. i have demet account but i m opreated my account only for IPO i have invest 2000 per month in SIP
        i m eligible for RGESS SCHEME

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